PetroVietnam: a bright spot in Vietnam’s first-half development picture

PetroVietnam's online meeting with member units in localities nationwide to review production and business activities in first half of 2021

The assessment was made at the recent periodical review meeting of PetroVietnam which was held online with top leaders of PetroVietnam and member units to sum up the production and business results of the first half and discuss work for the second half.

Accordingly, PetroVietnam had completed its oil exploitation target for the first six months in May already. Crude oil and condensate output surpassed the plan by 15 per cent in the first half, helping PetroVietnam reach an exploitation output of 9.68 million tonnes of oil equivalents. The corporation has also surpassed the set figures for petroleum and fertiliser production.

The group's financial performance has also shown high growth compared to 2020 to exceed the plan. Specifically, throughout the first half, PetroVietnam’s total revenue reached VND299.3 trillion ($13 billion), 20 per cent more than its projection and up 22 per cent over the corresponding period in 2020.

PetroVietnam labourers on duty at the Gas Moderating Centre

Total budget contribution touched VND45.2 trillion ($1.97 billion), a 42 per cent jump compared to the projection and up 33 per cent on-year, while consolidated pre-tax profit reached VND21.3 trillion ($926.1 million), equal to 165 per cent of the projection and more than triple the same period in 2020. This pre-tax profit growth was more than triple the projected 48 per cent increase in oil prices.

PetroVietnam’s return on equity (ROE) in the first six months was estimated at 4.6 per cent, ranking it in the group of oil and gas companies with good ROE worldwide.

These upbeat results came as a result of rising oil prices and lucid management by the group's Board of Directors. The effective business performance of one of the nation's key business groups has contributed to maintaining the country's stable socioeconomic development in the year to date.

Additionally, the group has made efforts to ensure the sufficient supply of products like gasoline, oil, gas, electricity, and nitrogen which are daily essentials, especially in the context of growing pandemic complications.

PetroVietnam labourers are working diligently

Petrovietnam has been gradually solving and removing obstacles at difficult projects. Efforts were geared towards building value chains in order to enhance co-ordination, as well as share and utilise the resources of member units to improve overall operational efficiency.

The corporation has also been actively optimising and reducing costs by a total VND1.691 trillion ($73.5 million), equal to 62 per cent of the full-year projection, making an important contribution to the group's overall business results.

The prevention of the COVID-19 pandemic has been implemented synchronously and effectively throughout the group.

Moving forward, PetroVietnam’s member units have maintained stable production and business, controlling inventories while ensuring COVID-19 prevention and absolute safety.

Responding to the government's call, Petrovietnam has contributed more than VND500 billion ($21.74 million) to the national COVID-19 Vaccine Fund and supported epidemic prevention and control in localities throughout the country.

PetroVietnam has also safely implemented the COVID-19 vaccination for its nearly 10,000 employees.

At the online review meeting, Petrovietnam chairman Hoang Quoc Vuong acknowledged the efforts of all units of the group in the first half of the year, highlighting that many units have been outperforming the plan.

PetroVietnam chairman Hoang Quoc Vuong and the group's other executives at the online meeting

Recognising the numerous challenges ahead, especially with the COVID-19 pandemic and fluctuating oil prices, Vuong suggested member units to make bigger strides to reach the annual targets.

“In the current difficult circumstances, more than ever before, businesses need to be united and support each other to complete all assigned plans,” Vuong cautioned.

Meanwhile, PetroVietnam general director Le Manh Hung praised member units for surmounting the many difficulties imposed by COVID-19 such as sharply rising material costs and difficult output markets to reach their assigned targets.

To accomplish their tasks for the second half, Hung highlighted a number of key tasks, including improving forecasting of the macroeconomic and market situation, flexible business and operations, deploying synchronous solutions on COVID-19 containment, finding vaccine sources to vaccinate employees throughout the group, and ensuring balanced oil and gas output.

In addition, efforts must be made to accelerate market expansion for gas, petrochemical products, as well as other products, further improving governance, as well as removing obstacles to production and business, in parallel with optimising production costs, trimming operating costs, and enhancing mutual support between member units.